Negotiating commissions is not in the best interest of business broker’s clients, a leading business broker told the GABB Board.
In August, the board met for a strategic planning session with Andy Cagnetta, owner/CEO of Transworld Business Brokers, LLC., of Ft. Lauderdale, Florida. Andy is also past chairman of the International Business Brokers Association, and a current chairman of the Business Brokers of Florida.
To illustrate his opposition to negotiating commissions, Andy told a personal story. Andy sold a business to a friend, and within 3-4 months, the friend was upside down in the business. Andy decided to discount his minimum commission by $3,000.
While the listing was active, a Florida broker called Andy and told him he had a buyer for the business. But when the other broker heard the amount of the commission, he said, “I’m not showing it to the buyer.” Instead, he showed the buyer a similar business in his office.
“My guy crashed and burned. He never got his money back, and got sued by landlord,” Andy recalled. “I didn’t help my seller.” He explained that the commission is part of the process to motivate brokers in the marketplace to bring deals to the table.
So now, Andy says at every listing appointment, he tells clients we’re not going to negotiate the commission. If they start scratching their heads, he tells them the story and says he’d be doing them a disservice.
“You’ve got to believe that motivating the marketplace is the right thing for you,” said Andy.Read More
The head of Georgia’s Real Estate Commission will speak to the GABB member’s meeting on September 29 before the group’s a strategic planning meeting to discuss and plan the future of the organization, to fortify GABB and the profession of business brokering.
The GABB meeting will be held at 10:30 a.m. at the South Terraces Conference Center, preceded by coffee and a light breakfast/networking session with fellow members before the meeting. The South Terraces Conference Center is at 115 Perimeter Center Place, Atlanta. Because of the nature of our discussions, this meeting is for members only and will not be open to the public. But you can join the GABB today and we will extend your membership through 2016.
Georgia Real Estate Commissioner William L. Rogers, Jr. serves as the Executive Officer for the Georgia Real Estate Commission and the Georgia Real Estate Appraisers Board. He oversees the day-to-day operations of the state agency responsible for implementing the license law regulating Georgia’s more than 82,000 real estate brokers and salespersons and the law regulating Georgia’s 4,700 real estate appraisers. All Georgia business brokers must have a real estate license to do business in the state.
A native of Gainesville, Rogers earned a Bachelor’s degree in History at Emory University and a J.D. degree from the University of Georgia School of Law. After a brief stint as a 2nd Lieutenant in the U.S. Army Signal Corps, Rogers was admitted to the State Bar of Georgia in 1971. Prior to joining the Real Estate Commission, he was a partner at Whelchel, Dunlap, Jarrard & Walker, LLP in Gainesville practicing real estate and banking law.
Rogers is a past President of the United Way of Hall County, past President of the Gainesville Northeast Georgia Bar Association as well as past President of the Kiwanis Club of Gainesville. He serves on the Board of Directors at Chattahoochee Bank of Georgia. He and and his wife, Mary, have been married more than 43 years and have three adult children and six grandchildren. He is a lifelong member of the First United Methodist Church of Gainesville.
GABB Member Meeting Agenda
Following the commissioner’s talk, GABB Board members will solicit input to help guide GABB’s primary objectives and adopt courses of actions to achieve these objectives. Committees or areas to move forward include:
- Professional Rules / Accountability
We need everyone to pull together to work on this. Please attend the Sept. 29 meeting to express your opinion, or email your opinion to the board at email@example.com.Read More
The GABB will gather on September 29 for a strategic planning meeting to discuss and plan the future of the organization, with an eye towards strengthening GABB and the profession of business brokering.
Because of the nature of our discussions, this meeting is for members only and will not be open to the public.
GABB Board members want member input to assist us in determining GABB’s primary objectives and adopting courses of actions to achieve these objectives.
Committees or areas to move forward include:
- Professional Rules / Accountability
In August, GABB Board members met with Andy Cagnetta, founder and CEO of Transworld Business Advisors, LLC., of Ft. Lauderdale, Florida. Andy is also past chairman of the International Business Brokers Association, and current Chairman of the Business Brokers of Florida. Here are some issues that arose during that meeting.
Co-brokerage: We will discuss how to make co-brokering more desireable and effective between GABB member brokers.
Professional education: Due to an increase in tuition for IBBA classes, the GABB and other professional business brokerage organizations are seeking new options for professional education for business brokerage.
Membership: How do we make membership more valuable and desirable in the business brokerage profession in Georgia?
Marketing & Media: How do we best use GABB dollars to market GABB members as the “go to” business brokers and M&A advisors in Georgia?
Rules and Accountability: What do we need to do to strengthen the professionalism of our broker members and hold those that engage in unprofessional or unethical conduct accountable for their actions?
We need everyone to pull together to work on this. Please attend the Sept. 29 meeting to express your opinion, or email your opinion to the board at firstname.lastname@example.orgGABB meetings begin with guest and member introductions.
The meeting will be held at 10:30 a.m. at the South Terraces Conference Center. Arrive early with your own cup of coffee to network with fellow members before the meeting. The South Terraces Conference Center is at 115 Perimeter Center Place, Atlanta.Read More